Housebuilding in Scotland at lowest level since covid

The total number of homes completed in Scotland during 2025-26 fell to the lowest level since the covid-19 pandemic, according to the latest government statistics.

In total, 17,268 new homes were built in the year ending March 2026, down 10% from 2024-25. This is also the least amount of homes completed since the pandemic-hit figure of 15,360 in 2020-21.

However, aside from the 2020-21 figure, all-sector completions were at the lowest level since 2016-2017.

Meanwhile, housing starts in 2025-26 saw their lowest figure since 2012-2013 at 14,955, dipping 23% lower in the past year than when covid-19 impacted housebuilding.

Jane Wood, chief executive of membership body Homes for Scotland (HFS), described the figures as a “another clear warning that Scotland remains on a deeply concerning housing trajectory.”

The HFS has predicted that housing completions could fall to as low as 5,000 per annum by 2031 given rising costs, infrastructure requirements, planning obligations, policy expectations and market conditions.

Private sector completions were down 8% annually to 13,493, while starts fell 12% to 11,018.

Wood added: “Scotland’s land supply crisis must be addressed with urgency. Allocating sites is not enough if they are constrained, unviable or unable to come forward at the pace required. We need a planning system that consistently identifies, releases and supports effective land for homes of all tenures.”

The social housing sector built 3,774 new homes and started 3,937 in 2025-26, with completions down 16% year-on-year, whereas starts were up 25%.

Under the Scottish government’s affordable housing supply programme (AHSP), it delivered 6,786 approvals, 7,421 starts and 6,832 completions covering social rent, affordable rent, and affordable home ownership, including new builds, rehabilitations and off‑the‑shelf purchases.

Approvals and starts under the scheme increased from last year by 42% and 37% respectively, but remained 47% and 37% below the 2019-2020 peak. Completions were at the lowest level since 2015-2016.

The government has a target of delivering 110,000 affordable homes by 2032, with at least 70% for social rent. As of March 2025-26, 35,368 homes had been completed, with 77% social rent, 14% affordable rent and 8% affordable home ownership.

Maeve McGoldrick, head of policy and communications at Crisis Scotland, said: “Homelessness cannot be ended by housebuilding alone. Alongside increasing housing supply, the Scottish government must continue to invest in prevention and support services so that people receive help before they reach crisis, and when homelessness does occur, it is rare and not repeated.”